The European Commission will explore an EU-wide windfall tax on energy companies following pressure from six member states including Germany and Italy. Economy Commissioner Valdis Dombrovskis confirmed a working group will be set up to examine the measure as refiners and oil firms reap bumper profits due to the Strait of Hormuz closure. The move mirrors a 2022 emergency measure that imposed at least a 33% tax on excess profits exceeding 20% above the three-year average.
Finance ministers discussed the proposal with Wopke Hoekstra, the taxation and climate commissioner, in Luxembourg. Since the Strait of Hormuz closure spiked energy prices, the Commission had previously advised against a unified tax, leaving it to individual nations. However, legal challenges from oil and gas companies in Belgium, Ireland, and Italy against the 2022 solidarity measure have made officials cautious.
Hoekstra noted that while all options must be considered, the tax is "not without complications" and several member states remain opposed.
Source: Financial Times Companies · Summarized by HeadlinesBriefing